Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The current and deferred amounts of income tax expense for December 2021, 2020 and 2019 are as follows (dollars in thousands):

	2021			2020			2019
Current:
Federal	$	32,364		$	19,590		$	15,509
State		12,325			7,006			5,018
Subtotal		44,689			26,596			20,527
Deferred:
Federal		(110	)		(3,881	)		916
State		126			(3,614	)		(812	)
Subtotal		16			(7,495	)		104
Income tax expense	$	44,705		$	19,101		$	20,631

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

On July 1, 2018 New Jersey Governor Phil Murphy signed Assembly Bill 4202 (“the Bill”) into law. The legislation imposes a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and of 1.5% for tax years beginning on or after January 1, 2020 through December 31, 2021. However, in 2020, this surtax was extended through December 31, 2023, at the 2.5% level. The legislation also requires combined filing for members of an affiliated group for tax years beginning on or after January 1, 2019, changing New Jersey’s current status as a separate return state, and limits the deductibility of dividends received.

Actual income tax expense differs from the tax computed based on pre-tax income and the applicable statutory federal tax rate for the following reasons (dollars in thousands) December 31,

	2021			2020			2019
Income before income tax expense	$	175,058		$	90,390		$	94,026
Federal statutory rate		21	%		21	%		21	%
Computed “expected” Federal income tax expense		36,762			18,982			19,745
State tax, net of federal tax benefit		9,127			1,913			3,436
Bank owned life insurance		(1,001	)		(1,052	)		(732	)
Tax-exempt interest and dividends		(1,405	)		(1,491	)		(2,519	)
Tax benefits from stock-based compensation		(261	)		157			(27	)
Other, net		1,483			592			728
Income tax expense	$	44,705		$	19,101		$	20,631

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred tax asset and deferred tax liability as of December 31, 2021 and 2020 are presented in the following table:

	2021			2020
	(dollars in thousands)
Deferred tax assets
Allowance for credit losses	$	23,955		$	23,399
Depreciation		205			-
Pension actuarial losses		1,301			1,385
New Jersey net operating loss		3,609			4,370
Deferred compensation		2,786			1,835
Unrealized loss on AFS		191			-
Deferred loan costs, net of fees		2,163			357
Capital lease		222			225
Nonaccrual interest		62			51
Other		3,703			4,519
Total deferred tax assets	$	38,197		$	36,141
Deferred tax liabilities
Employee benefit plans	$	(2,289	)	$	(2,161	)
Purchase accounting		(925	)		(1,821	)
Depreciation		-			(187	)
Prepaid expenses		(288	)		(201	)
Market discount accretion		(437	)		(428	)
Unrealized gains on securities and swaps		(941	)		(2,171	)
Other		(1,562	)		-
Total deferred tax liabilities		(6,442	)		(6,969	)
Net deferred tax assets	$	31,755		$	29,172